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Novagold Resources Inc New (TSE:NG)
TSX:NG
Top Page
Novagold Resources New
(TSX:NG)
Rating:40Underperform
Price Target:―
Novagold Resources New (NG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$3.74B
Dividend YieldN/A
Average Volume (3M)472.86K
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue GrowthN/A
EPS Growth-87.72%
CountryCA
Employees14
SectorBasic Materials
Sector Strength60
IndustryGold
Share Statistics
EPS (TTM)-0.21
Shares Outstanding406,897,640
10 Day Avg. Volume558,886
30 Day Avg. Volume472,860
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.40
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-68.54K
Enterprise Value/Ebitda-21.47
Forecast
1Y Price Target
$11.17Price Target Upside15.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Novagold Resources New Business Overview & Revenue Model
Company DescriptionNovaGold Resources Inc. (NG) is a precious metals company primarily focused on the exploration and development of mineral properties in North America. The company's core asset is the Donlin Gold project, located in Alaska, which is one of the largest undeveloped gold deposits in the world. NovaGold is committed to advancing this project towards production in partnership with Barrick Gold Corporation.
How the Company Makes MoneyNovaGold Resources Inc. primarily makes money through the exploration and development of its key gold asset, the Donlin Gold project. Revenue generation for the company is expected to come from the eventual production and sale of gold extracted from this project. The company currently relies on strategic partnerships, most notably with Barrick Gold Corporation, to share the costs and risks associated with developing such a large-scale mining operation. Until production begins, NovaGold's financial strategy involves securing funding from investors and partners to continue its development activities and maintain operational stability.
Novagold Resources New Earnings Call Summary
Earnings Call Date:Jun 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 01, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with NovaGold's strategic progress, financial strengthening, and partnership with Paulson Advisors. Despite the increased net loss due to non-cash charges and the need for an updated feasibility study, the company's long-term outlook appears optimistic.Q2-2025 Updates
Positive Updates
Revival of NovaGold
NovaGold has removed its previous headwind with a former partner, paving the way for a revival and aiming to surpass past share price highs of $12 to $15, driven by positive factors such as gold price increases and drilling successes.
Strategic Partnership with Paulson Advisors
NovaGold formed a strategic partnership with Paulson Advisors, who purchased a 40% economic interest in Donlin for $800 million, aligning both parties with the project's future.
Strong Financial Position
NovaGold's treasury increased by $225.7 million to $318.7 million at the end of the second quarter, mainly due to a public offering and a private placement.
Drilling and Exploration Progress
A drilling program commenced in March, focusing on resource conversion around the ACMA and Lewis deposits, with potential for significant resource expansion.
Permitting Success
NovaGold has completed federal permitting and is on track with state permitting, with a recent court ruling upholding their permits.
Negative Updates
Increased Net Loss
NovaGold reported a net loss of $54.3 million in the second quarter, an increase of $40.6 million from the prior year, primarily due to a $39.6 million noncash charge related to warrants issued.
Outdated Feasibility Study
The last capital refresh was several years ago, with outdated numbers. The feasibility study is anticipated to take two years to update.
Company Guidance
In the recent NovaGold's Second Quarter 2025 Financial Results Conference Call, several key metrics and updates were shared, highlighting the company's progress and plans. The net loss for the quarter was reported at $54.3 million, significantly influenced by a $39.6 million noncash, nonrecurring charge related to a recent transaction. NovaGold successfully increased its treasury by $225.7 million, reaching $318.7 million at the quarter's end, primarily from a public offering and private placement. This capital was largely used to acquire an additional 10% interest in the Donlin Gold project, increasing NovaGold's economic interest to 60%. The company plans to commence an updated feasibility study for Donlin Gold, estimated to cost about $80 million and take two years to complete. The drilling program in Alaska, covering 15,000 meters, is halfway through, focusing on resource conversion at the ACMA and Lewis deposits. Additionally, the company is preparing for a ramp-up in expenditures as they advance the feasibility study and continue permitting processes, while maintaining strong community and governmental engagement.Novagold Resources New Financial Statement Overview
Summary
NovaGold Resources faces significant financial challenges, with no revenue and persistent losses. The company's negative equity and reliance on debt highlight substantial financial instability.Income Statement
The company has no revenue, leading to negative profitability metrics across the board. Gross profit, EBIT, and net income are all negative, indicating a lack of operational efficiency and profitability. The lack of revenue and high operating losses are significant concerns.10
Very Negative
Balance Sheet
The balance sheet shows negative stockholders' equity, which is a major red flag. The debt-to-equity ratio is negative due to the negative equity, suggesting high financial leverage. The company's liabilities exceed its assets, which poses a risk of insolvency.20
Very Negative
Cash Flow
Negative free cash flow and operating cash flow indicate that the company is not generating cash from its operations, which is unsustainable in the long term. The company is relying on financing and investing activities to manage its cash needs.15
Very Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 0.00 | 0.00 | -7.00K | -7.00K | -7.00K |
| EBITDA | -24.91M | -21.77M | -45.83M | -33.82M | -28.16M |
| Net Income | -45.62M | -46.80M | -53.34M | -40.54M | -33.56M |
Balance Sheet | |||||
| Total Assets | 109.75M | 133.29M | 159.19M | 198.85M | 224.44M |
| Cash, Cash Equivalents and Short-Term Investments | 101.22M | 125.75M | 125.88M | 169.12M | 121.91M |
| Total Debt | 152.45M | 137.55M | 124.63M | 116.13M | 110.41M |
| Total Liabilities | 157.17M | 141.51M | 129.29M | 120.57M | 113.71M |
| Stockholders Equity | -47.42M | -8.22M | 29.90M | 78.28M | 110.73M |
Cash Flow | |||||
| Free Cash Flow | -12.64M | -7.79M | -12.37M | -9.66M | -10.02M |
| Operating Cash Flow | -12.64M | -7.79M | -12.37M | -9.86M | -10.02M |
| Investing Cash Flow | 9.36M | -10.33M | -12.36M | 40.39M | 4.72M |
| Financing Cash Flow | -174.00K | 0.00 | -2.12M | -731.00K | -1.65M |
Novagold Resources New Technical Analysis
Positive
9.67
Price Trends
7.90
Positive
6.71
Positive
5.66
Positive
Market Momentum
0.47
Positive
72.04
Negative
66.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NG, the sentiment is Positive. The current price of 9.67 is above the 20-day moving average (MA) of 8.91, above the 50-day MA of 7.90, and above the 200-day MA of 5.66, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 72.04 is Negative, neither overbought nor oversold. The STOCH value of 66.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NG.
Novagold Resources New Risk Analysis
Novagold Resources New disclosed 30 risk factors in its most recent earnings report. Novagold Resources New reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Novagold Resources New Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$2.90B | 11.95 | 39.89% | ― | 81.12% | 514.82% | |
61 Neutral | $10.48B | 7.30 | -0.05% | 2.85% | 2.87% | -36.73% | |
51 Neutral | C$3.73B | ― | -32.74% | 3.13% | 39.55% | -89.48% | |
46 Neutral | C$2.48B | ― | -37.26% | ― | 36.21% | 33.44% | |
40 Underperform | $3.74B | ― | -123.35% | ― | ― | -87.72% | |
| ― | $1.90B | ― | -4.84% | ― | ― | ― | |
| ― | $1.82B | 24.62 | 4.38% | 2.17% | ― | ― |
* Basic Materials Sector Average
Performance Comparison
TSE:NG
Novagold Resources New
9.67
3.70
61.98%
SA
Seabridge Gold
18.62
1.13
6.46%
TSE:ORA
Aura Minerals
43.87
29.95
215.16%
TSE:WDO
Wesdome Gold Mines
19.72
6.11
44.89%
CGAU
Centerra Gold
9.17
2.41
35.65%
TSE:AAUC
Allied Gold Corporation
21.49
11.83
122.46%
Novagold Resources New Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
NOVAGOLD Sets Date for 2025 Virtual Annual Shareholders Meeting
Positive
Apr 30, 2025
NOVAGOLD RESOURCES INC. announced that its 2025 Annual General Meeting of Shareholders will be held virtually on May 15, 2025. Shareholders will have the opportunity to vote on various matters, including the election of directors and executive compensation. The meeting will also feature a presentation by the company’s leadership on recent achievements, including a transaction to acquire Barrick Gold’s 50% interest in the Donlin Gold project, and the outlook for the rest of the year. The virtual format is intended to enhance accessibility and reduce the carbon footprint, reflecting the company’s commitment to sustainability.
Spark’s Take on TSE:NG Stock
According to Spark, TipRanks’ AI Analyst, TSE:NG is a Neutral.
NovaGold Resources faces significant financial hurdles, with no revenue and negative equity posing major risks. Despite this, the stock shows strong technical momentum, though it may be overbought. Positive guidance on the Donlin Gold project and a strong cash position support its potential. Nevertheless, ongoing litigation and project delays remain key concerns, impacting the stock’s attractiveness.
To see Spark’s full report on TSE:NG stock, click here.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.